Rhode Island General Laws 42-61.2-7. Division of revenue
(a) Notwithstanding the provisions of § 42-61-15, the allocation of net terminal income derived from video lottery games is as follows:
(1) For deposit in the general fund and to the Division fund for administrative purposes: Net terminal income not otherwise disbursed in accordance with subsections (a)(2) — (a)(6), inclusive of this section, or otherwise disbursed in accordance with subsections (g)(2) and (h)(2) of this section;
(i) Except for the fiscal year ending June 30, 2008, nineteen one hundredths of one percent (0.19%), up to a maximum of twenty million dollars ($20,000,000), shall be equally allocated to the distressed communities (as defined in § 45-13-12) provided that no eligible community shall receive more than twenty-five percent (25%) of that community’s currently enacted municipal budget as its share under this specific subsection. Distributions made under this specific subsection are supplemental to all other distributions made under any portion of § 45-13-12. For the fiscal year ending June 30, 2008, distributions by community shall be identical to the distributions made in the fiscal year ending June 30, 2007, and shall be made from general appropriations. For the fiscal year ending June 30, 2009, the total state distribution shall be the same total amount distributed in the fiscal year ending June 30, 2008, and shall be made from general appropriations. For the fiscal year ending June 30, 2010, the total state distribution shall be the same total amount distributed in the fiscal year ending June 30, 2009, and shall be made from general appropriations, provided, however, that seven hundred eighty-four thousand four hundred fifty-eight dollars ($784,458) of the total appropriation shall be distributed equally to each qualifying distressed community. For each of the fiscal years ending June 30, 2011, June 30, 2012, and June 30, 2013, seven hundred eighty-four thousand four hundred fifty-eight dollars ($784,458) of the total appropriation shall be distributed equally to each qualifying distressed community.
(ii) Five one hundredths of one percent (0.05%), up to a maximum of five million dollars ($5,000,000), shall be appropriated to property tax relief to fully fund the provisions of § 44-33-2.1 [repealed]. The maximum credit defined in § 44-33-9(2) shall increase to the maximum amount to the nearest five dollar ($5.00) increment within the allocation until a maximum credit of five hundred dollars ($500) is obtained. In no event shall the exemption in any fiscal year be less than the prior fiscal year.
(iii) One and twenty-two one hundredths of one percent (1.22%) to fund § 44-34.1-1 [repealed], entitled “Motor Vehicle and Trailer Excise Tax Elimination Act of 1998,” to the maximum amount to the nearest two hundred fifty dollar ($250) increment within the allocation. In no event shall the exemption in any fiscal year be less than the prior fiscal year.
(iv) Except for the fiscal year ending June 30, 2008, ten one hundredths of one percent (0.10%), to a maximum of ten million dollars ($10,000,000), for supplemental distribution to communities not included in subsection (a)(1)(i) of this section distributed proportionately on the basis of general revenue sharing distributed for that fiscal year. For the fiscal year ending June 30, 2008, distributions by community shall be identical to the distributions made in the fiscal year ending June 30, 2007, and shall be made from general appropriations. For the fiscal year ending June 30, 2009, no funding shall be disbursed. For the fiscal year ending June 30, 2010, and thereafter, funding shall be determined by appropriation.
Terms Used In Rhode Island General Laws 42-61.2-7
- Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
- Contract: A legal written agreement that becomes binding when signed.
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- town: may be construed to include city; the words "town council" include city council; the words "town clerk" include city clerk; the words "ward clerk" include clerk of election district; the words "town treasurer" include city treasurer; and the words "town sergeant" include city sergeant. See Rhode Island General Laws 43-3-9
(2) To the licensed video lottery retailer:
(a)(i) Prior to the effective date of the Newport Grand Master Contract, Newport Grand twenty-six percent (26%), minus three hundred eighty-four thousand nine hundred ninety-six dollars ($384,996);
(ii) On and after the effective date of the Newport Grand Master Contract, to the licensed video lottery retailer who is a party to the Newport Grand Master Contract, all sums due and payable under said Master Contract, minus three hundred eighty-four thousand nine hundred ninety-six dollars ($384,996).
(iii) Effective July 1, 2013, the rate of net terminal income payable to the licensed video lottery retailer who is a party to the Newport Grand Master Contract shall increase by two and one quarter percent (2.25%) points. The increase herein shall sunset and expire on June 30, 2015, and the rate in effect as of June 30, 2013, shall be reinstated.
(iv)(A) Effective July 1, 2015, the rate of net terminal income payable to the licensed video lottery retailer who is a party to the Newport Grand Master Contract shall increase over the rate in effect as of June 30, 2013, by one and nine-tenths (1.9) percentage points. (i.e., x% plus 1.9 percentage points equals (x + 1.9)%, where “x%” is the current rate of net terminal income payable to the licensed video lottery retailer who is a party to the Newport Grand Master Contract). The dollar amount of additional net terminal income paid to the licensed video lottery retailer who is a party to the Newport Grand Master Contract with respect to any Newport Grand Marketing Year as a result of such increase in rate shall be referred to as “Additional Newport Grand Marketing NTI.”
(B) The excess, if any, of marketing expenditures incurred by the licensed video lottery retailer who is a party to the Newport Grand Master Contract with respect to a Newport Grand Marketing Year over one million four hundred thousand dollars ($1,400,000) shall be referred to as the “Newport Grand Marketing Incremental Spend.” Beginning with the Newport Grand Marketing Year that starts on July 1, 2015, after the end of each Newport Grand Marketing Year, the licensed video lottery retailer who is a party to the Newport Grand Master Contract shall pay to the Division the amount, if any, by which the Additional Newport Grand Marketing NTI for such Newport Grand Marketing Year exceeds the Newport Grand Marketing Incremental Spend for such Newport Grand Marketing Year; provided however, that such video lottery retailer’s liability to the Division hereunder with respect to any Newport Grand Marketing Year shall never exceed the Additional Newport Grand Marketing NTI paid to such video lottery retailer with respect to such Newport Grand Marketing Year.
The increase in subsection 2(a)(iv) shall sunset and expire upon the commencement of the operation of casino gaming at Twin River-Tiverton’s facility located in the town of Tiverton, and the rate in effect as of June 30, 2013, shall be reinstated.
(b)(i) Prior to the effective date of the UTGR master contract, to the present, licensed video lottery retailer at Lincoln Park, which is not a party to the UTGR master contract, twenty-eight and eighty-five one hundredths percent (28.85%), minus seven hundred sixty-seven thousand six hundred eighty-seven dollars ($767,687);
(ii) On and after the effective date of the UTGR master contract, to the licensed video lottery retailer that is a party to the UTGR master contract, all sums due and payable under said master contract minus seven hundred sixty-seven thousand six hundred eighty-seven dollars ($767,687).
(3) Except for the period commencing on January 1, 2023, and expiring on June 30, 2043, (i) To the technology providers that are not a party to the GTECH Master Contract as set forth and referenced in P.L. 2003, ch. 32, seven percent (7%) of the net terminal income of the provider’s terminals; in addition thereto, technology providers that provide premium or licensed proprietary content or those games that have unique characteristics, such as 3D graphics; unique math/game play features; or merchandising elements to video lottery terminals may receive incremental compensation, either in the form of a daily fee or as an increased percentage, if all of the following criteria are met:
(A) A licensed video lottery retailer has requested the placement of premium or licensed proprietary content at its licensed video lottery facility;
(B) The division of lottery has determined in its sole discretion that the request is likely to increase net terminal income or is otherwise important to preserve or enhance the competitiveness of the licensed video lottery retailer;
(C) After approval of the request by the division of lottery, the total number of premium or licensed, proprietary-content video lottery terminals does not exceed ten percent (10%) of the total number of video lottery terminals authorized at the respective licensed video lottery retailer; and
(D) All incremental costs are shared between the division and the respective licensed video lottery retailer based upon their proportionate allocation of net terminal income. The division of lottery is hereby authorized to amend agreements with the licensed video lottery retailers, or the technology providers, as applicable, to effect the intent herein.
(ii) To contractors that are a party to the master contract as set forth and referenced in P.L. 2003, ch. 32, all sums due and payable under said master contract; and
(iii) Notwithstanding paragraphs (i) and (ii), there shall be subtracted proportionately from the payments to technology providers the sum of six hundred twenty-eight thousand seven hundred thirty-seven dollars ($628,737) which shall be distributed pursuant to § 42-61.2-7(b)(3)(iii).
With respect to the period commencing on January 1, 2023 and expiring on June 30, 2043,
(i) To the exclusive technology provider, all sums due and payable under the VLT Agreement;
(ii) Notwithstanding paragraph (i), there shall be subtracted from the payments to the exclusive technology provider the sum of six hundred twenty-eight thousand seven hundred thirty-seven dollars ($628,737) which shall be distributed pursuant to § 42-61.2-7(b)(3)(iii); and
(iii) To IGT, all sums due and payable under the Video Lottery Agreement.
(4)(A) Until video lottery games are no longer operated at the Newport Grand gaming facility located in Newport, to the city of Newport one and one hundredth percent (1.01%) of net terminal income of authorized Video Lottery Terminals at Newport Grand, except that effective November 9, 2009, until June 30, 2013, the allocation shall be one and two tenths percent (1.2%) of net terminal income of authorized Video Lottery Terminals at Newport Grand for each week the facility operates video lottery games on a twenty-four-hour (24) basis for all eligible hours authorized; and
(B) Upon commencement of the operation of video lottery games at the Tiverton gaming facility, to the town of Tiverton one and forty-five hundredths percent (1.45%) of net terminal income of authorized Video Lottery Terminals at the Tiverton gaming facility, subject to subsection (g)(2); and
(C) To the town of Lincoln, one and twenty-six hundredths percent (1.26%) of net terminal income of authorized Video Lottery Terminals at the Lincoln gaming facility except that:
(i) Effective November 9, 2009, until June 30, 2013, the allocation shall be one and forty-five hundredths percent (1.45%) of net terminal income of authorized Video Lottery Terminals at the Lincoln gaming facility for each week video lottery games are offered on a twenty-four-hour (24) basis for all eligible hours authorized; and
(ii) Effective July 1, 2013, provided that the referendum measure authorized by P.L. 2011, ch. 151, article 25 as amended, section 4, is approved statewide and in the Town of Lincoln, the allocation shall be one and forty-five hundredths percent (1.45%) of net terminal income of authorized Video Lottery Terminals at the Lincoln gaming facility, subject to subsection (h)(2); and
(5) To the Narragansett Indian Tribe, seventeen hundredths of one percent (0.17%) of net terminal income of authorized Video Lottery Terminals at the Lincoln gaming facility, up to a maximum of ten million dollars ($10,000,000) per year, that shall be paid to the Narragansett Indian Tribe for the account of a Tribal Development Fund to be used for the purpose of encouraging and promoting: home ownership and improvement; elderly housing; adult vocational training; health and social services; childcare; natural resource protection; and economic development consistent with state law. Provided, however, such distribution shall terminate upon the opening of any gaming facility in which the Narragansett Indians are entitled to any payments or other incentives; and provided, further, any monies distributed hereunder shall not be used for, or spent on, previously contracted debts; and
(6) Unclaimed prizes and credits shall remit to the general fund of the state; and
(7) Payments into the state’s general fund specified in subsections (a)(1) and (a)(6) of this section shall be made on an estimated monthly basis. Payment shall be made on the tenth day following the close of the month except for the last month when payment shall be on the last business day.
(b) Notwithstanding the above, the amounts payable by the Division to UTGR related to the marketing program described in the UTGR master contract (as such may be amended from time to time) shall be paid on a frequency agreed by the Division, but no less frequently than annually.
(c) Notwithstanding anything in this chapter to the contrary, the director is authorized to fund the marketing program as described in the UTGR master contract.
(d) Notwithstanding the above, the amounts payable by the Division to the licensed video lottery retailer who is a party to the Newport Grand Master Contract related to the marketing program described in the Newport Grand Master Contract (as such may be amended from time to time) shall be paid on a frequency agreed by the Division, but no less frequently than annually.
(e) Notwithstanding anything in this chapter to the contrary, the director is authorized to fund the marketing program as described in the Newport Grand Master Contract.
(f) Notwithstanding the provisions of § 42-61-15, but subject to subsection (h) of this section, the allocation of net table-game revenue derived from table games at the Lincoln gaming facility is as follows:
(1) For deposit into the state lottery fund for administrative purposes and then the balance remaining into the general fund:
(i) Sixteen percent (16%) of net table-game revenue, except as provided in subsection (f)(1)(ii) of this section;
(ii) An additional two percent (2%) of net table-game revenue generated at the Lincoln gaming facility shall be allocated starting from the commencement of table games activities by such table-game retailer and ending, with respect to such table-game retailer, on the first date that such table-game retailer’s net terminal income for a full state fiscal year is less than such table-game retailer’s net terminal income for the prior state fiscal year, at which point this additional allocation to the state shall no longer apply to such table-game retailer.
(2) To UTGR, net table-game revenue not otherwise disbursed pursuant to subsection (f)(1); provided, however, on the first date that such table-game retailer’s net terminal income for a full state fiscal year is less than such table-game retailer’s net terminal income for the prior state fiscal year, as set forth in subsection (f)(1)(ii), one percent (1%) of this net table-game revenue shall be allocated to the town of Lincoln for four (4), consecutive state fiscal years.
(g) Notwithstanding the provisions of § 42-61-15, the allocation of net table-game revenue derived from table games at the Tiverton gaming facility is as follows:
(1) Subject to subsection (g)(2) of this section, one percent (1%) of net table-game revenue shall be allocated to the town of Tiverton;
(2) Fifteen and one-half percent (15.5%) of net table-game revenue shall be allocated to the state first for deposit into the state lottery fund for administrative purposes and then the balance remaining into the general fund; provided however, that beginning with the first state fiscal year that the Tiverton gaming facility offers patrons video lottery games and table games, for that initial state fiscal year and each subsequent state fiscal year that such Tiverton gaming facility offers patrons video lottery games and table games for all of such state fiscal year, if the town of Tiverton has not received an aggregate of three million dollars ($3,000,000) in the state fiscal year from net table-game revenues and net terminal income, combined, generated by the Tiverton gaming facility (“Tiverton Minimum”), then the state shall make up such shortfall to the town of Tiverton out of the state’s percentage of net table-game revenue set forth in this subsection (g)(2) and net terminal income set forth in subsections (a)(1) and (a)(6), so long as that there has not been a closure of the Tiverton gaming facility for more than thirty (30) consecutive days during such state fiscal year, and, if there has been such a closure, then the Tiverton Minimum, if applicable, shall be prorated per day of such closure and any closure(s) thereafter for that state fiscal year; notwithstanding the foregoing, with respect to fiscal year 2021, because of the closure of the Tiverton gaming facility due to the COVID-19 pandemic, the town of Tiverton shall receive no less than a total of three million dollars ($3,000,000) as an aggregate payment for net table-game revenues, net terminal income, and the shortfall from the state, combined; provided further however, if in any state fiscal year either video lottery games or table games are no longer offered in the Tiverton gaming facility, then the state shall not be obligated to make up the shortfall referenced in this subsection (g)(2); and
(3) Net table-game revenue not otherwise disbursed pursuant to subsections (g)(1) and (g)(2) of this section shall be allocated to Twin River-Tiverton.
(h) Notwithstanding the foregoing subsection (f) and superseding that subsection effective upon the first date that the Tiverton gaming facility offers patrons video lottery games and table games, the allocation of net table-game revenue derived from table games at the Lincoln gaming facility shall be as follows:
(1) Subject to subsection (h)(2), one percent (1%) of net table-game revenue shall be allocated to the town of Lincoln;
(2) Fifteen and one-half percent (15.5%) of net table-game revenue shall be allocated to the state first for deposit into the state lottery fund for administrative purposes and then the balance remaining into the general fund; provided however, that beginning with the first state fiscal year that the Tiverton gaming facility offers patrons video lottery games and table games for all of such state fiscal year, for that state fiscal year and each subsequent state fiscal year that the Tiverton gaming facility offers patrons video lottery games and table games for all of such state fiscal year, if the town of Lincoln has not received an aggregate of three million dollars ($3,000,000) in the state fiscal year from net table-game revenues and net terminal income, combined, generated by the Lincoln gaming facility (“Lincoln Minimum”), then the state shall make up such shortfall to the town of Lincoln out of the state’s percentage of net table-game revenue set forth in this subsection (h)(2) and net terminal income set forth in subsections (a)(1) and (a)(6) of this section, so long as that there has not been a closure of the Tiverton gaming facility for more than thirty (30) consecutive days during such state fiscal year, and, if there has been such a closure, then the Lincoln Minimum, if applicable, shall be prorated per day of such closure and any closure(s) thereafter for that state fiscal year; provided further however, if in any state fiscal year either video lottery games or table games are no longer offered at the Tiverton gaming facility, then the state shall not be obligated to make up the shortfall referenced in this subsection (h)(2); and
(3) Net table-game revenue not otherwise disbursed pursuant to subsections (h)(1) and (h)(2) of this section shall be allocated to UTGR.
History of Section.
P.L. 1992, ch. 133, art. 39, § 1; P.L. 1993, ch. 138, art. 61, § 1; P.L. 1993, ch. 138, art. 81, § 1; P.L. 1994, ch. 70, art. 22, § 1; P.L. 1995, ch. 370, art. 26, § 2; P.L. 1995, ch. 370, art. 40, § 138; P.L. 2000, ch. 55, art. 22, § 2; P.L. 2002, ch. 65, art. 20, § 1; P.L. 2003, ch. 376, art. 10, § 1; P.L. 2004, ch. 595, art. 28, § 1; P.L. 2005, ch. 117, art. 11, § 1; P.L. 2005, ch. 234, § 2; P.L. 2005, ch. 236, § 2; P.L. 2005, ch. 322, § 9; P.L. 2005, ch. 323, § 9; P.L. 2006, ch. 246, art. 30, § 1; P.L. 2007, ch. 6, § 2; P.L. 2007, ch. 73, art. 25, § 3; P.L. 2008, ch. 13, § 1; P.L. 2008, ch. 100, art. 15, § 1; P.L. 2009, ch. 5, art. 7, § 1; P.L. 2009, ch. 68, art. 6, § 2; P.L. 2009, ch. 218, § 1; P.L. 2010, ch. 16, § 5; P.L. 2011, ch. 151, art. 12, § 10; P.L. 2011, ch. 151, art. 25, § 9; P.L. 2012, ch. 241, art. 16, § 1; P.L. 2012, ch. 289, § 4; P.L. 2012, ch. 290, § 4; P.L. 2013, ch. 144, art. 9, § 10; P.L. 2014, ch. 436, § 1; P.L. 2014, ch. 528, § 57; P.L. 2015, ch. 141, art. 11, § 21; P.L. 2016, ch. 5, § 2; P.L. 2016, ch. 6, § 2; P.L. 2017, ch. 302, art. 8, § 2; P.L. 2021, ch. 41, § 5, effective June 11, 2021; P.L. 2021, ch. 42, § 5, effective June 11, 2021; P.L. 2021, ch. 162, art. 6, § 9, effective July 6, 2021.